Oil States International, Inc. reported net income for the quarter ended December 31, 2007 of $48.2 million, or $0.95 per diluted share compared to $49.4 million, or $0.98 per diluted share, reported in the fourth quarter of 2006. Oil States recognized year-over-year growth in revenues and EBITDA (defined as net income plus interest, taxes, depreciation and amortization) of 20% and 5%, respectively, in the fourth quarter of 2007.
The Company generated $581.0 million of revenues and $94.7 million of EBITDA in the fourth quarter of 2007 compared to $484.3 million and $90.4 million, respectively, in the fourth quarter of 2006. Consolidated operating income in the fourth quarter of 2007 was $71.6 million compared to $73.2 million for the corresponding quarter of 2006. Increasing deepwater capital equipment sales in our Offshore Products segment and growth in our oil sands accommodations business along with contributions from two rental tool acquisitions completed during the third quarter of 2007 resulted in significant year-over-year improvements in revenue and EBITDA. However, consolidated EBITDA was negatively impacted by reduced margins in Drilling Services resulting from lower utilization due to extensive holiday downtime and lower margins in Tubular Services as record OCTG shipments were offset by lower OCTG prices.
The Company recognized an effective tax rate of 30.1% in the fourth quarter of 2007 compared to 31.3% in the fourth quarter of 2006. The effective tax rate in the fourth quarter of 2007 benefited from statutory tax rate changes in Canada; similarly the effective rate in the fourth quarter of 2006 benefited from tax return adjustments and the annualized benefit of lower state effective tax rates. During the fourth quarter, the Company spent $67.6 million in capital expenditures, primarily to expand its major oil sands lodges, and spent $23.4 million repurchasing 705,500 shares of its common stock.
The Company reported revenues of $2.1 billion and EBITDA of $385.5 million for the full year 2007 which resulted in net income of $203.4 million, or $3.99 per diluted share. For the same period in 2006, the Company reported revenues of $1.9 billion and EBITDA of $372.9 million, resulting in net income of $197.6 million, or $3.89 per diluted share. The results for 2007 include a $12.8 million pre-tax gain related to the sale of a portion of the Company's investment in Boots & Coots. Additionally, in 2006, the Company recognized an $11.3 million pre-tax gain from the sale of its workover business to Boots & Coots.
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